Atul SinghaliThe founder and CEO of digital wealth management platform Scripbox said he is an equity-biased investor but does not venture into direct equity investments. “I firmly believe that we have to trust the professionals. My portfolio reflects the fund’s recommendations by Scripbox.”
scripbox Algorithms build portfolios, typically by selecting a mix of large- and mid-cap funds with a consistent track record over the long term, with a greater focus on recent track records. For the debt portfolio, according to Scripbox, the algorithm selects funds that are consistently outperforming the CCIL Broad TRI Index, an index that tracks the top 20 traded Indian government bonds based on volume and number of trades. Is.
To understand the impact of the pandemic on the personal investment portfolios of leaders in the financial services sector, Singhal shared his portfolio details for the special annual Mint series – Guru Portfolio, which began in 2020.
The series looks at how respondents’ investments have fared, the changes made to their portfolios, and the investment lessons they have for investors.
asset class view
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About 60 per cent of Singhal’s portfolio is in equities. He believes that equities help beat inflation and build wealth in the long run. 10% of the equity portfolio is invested abroad for diversification. He also considers this international exposure as a hedge against dollar volatility/depreciation to meet his future financial targets.
“My daughter wants to study abroad, so investing abroad helps in hedging the dollar,” she said.
Although Singhal has 20% allocation for immovable assets (in the form of assets), he does not consider it as an asset class given the cost of buying and selling the asset and its illiquid nature.
He also does not believe in including the house as part of the net worth, saying it is not an appreciable asset that can be used for emergency purposes or to generate returns. But he is positive about the newly emerging asset classes that are linked to real estate (eg – REITs).
Regarding his angel investments, he said, “As I am an entrepreneur, I support entrepreneurs. So, I have some angel investments.”
take away
Singhal is a firm believer in putting his asset allocation principles into practice.
First, he identified himself as a high-risk investor based on risk profiling. At the same time, he identified his financial goals such as retirement and his daughter’s education.
Based on the investment horizon available for each target, the asset allocation of the portfolio has been determined, which is reviewed every year based on the requirements.
For example, he said that he recently made some investments in a fixed income portfolio from equities to meet his daughter’s education requirement which comes in the next few years. Since Singhal has exposure to angel investments, we asked him what his advice would be for anyone looking to invest in start-ups.
As for that, he said, “If the advisor or financial wealth manager says that a portion of one’s portfolio can be allocated to high-risk assets, that is fine. But, I believe it is 10%.” Before investing, one should ensure that their financial goals like retirement and child education are well protected.”
He also said that it would be better for individuals to use angel investment platforms while investing in start-ups.
He said, “As an individual, in most cases, it is unlikely that the investor will be able to have a complete understanding of the start-up, the entrepreneur and what it is doing. Therefore, it is better to find a platform that can do the diligence “
(Note to readers: Through this series, we attempt to highlight the fundamentals of personal finance such as asset allocation, diversification and rebalancing. We do not suggest repeating Shingle’s asset allocation, as personal finance personal finance -is distinct and differs from person to person.)